Bad credit history is like a stigma which leads to harsh treatment of an individual by credit card issuers, insurance companies, banks giving out personal loans and a lot of other entities. However, not all is lost if you have established a bad credit history. Turning around the bad credit history will need patience and discipline but it is not impossible.
There are some strict rules as far as going for balance transfer is concerned. You must avoid cards that charge a balance transfer fee. You must avoid going for a card which has a very high interest rate after the promotional period. Lastly, you must try to get a balance transfer to a card that gives low interests during the promotional period which lasts for at least 6 - 12 months. Balance transfer cards are your chance to set the ball rolling, by taking out the fear of accumulating a lot of interest rate.
To develop a good credit history, your credit card should still have some expenses. But you must only spend what you can afford and not go overboard on it. Spending beyond your means is a sure way to doom.
You can decide your monthly target yourself or take the help of the credit card issuer. If you have taken a balance transfer to another card, it is obviously a good idea to try and pay off your debt before the end of the promotional period as the interests are quite high afterwards. You have to stick to the monthly payment at all costs.
This is easily the golden rule to erase a bad credit history and to develop good credit history. You must make regular monthly payments for the credit card bills as well as bill payments of other utilities too. If your credit history shows that you have consistently paid before deadlines for over a year, you become very creditworthy and credit card issuers and banks will start considering your applications.
Closing a credit card might deprive you of history. But transferring all balance to one card would help you keep track of your debts, the interest and your monthly bill payment date.